Loan extension for Cosalt as shares suspended

COSALT’S shares were suspended from trading on the Stock Market this morning after the company said it had missed a deadline for publishing its annual accounts.

The Grimsby-headquartered company, which provides marine Safety products and associated services to the marine, industrial and offshore oil and gas markets, has also been given an extension to pay a £1m loan.

The loan, provided by chairman David Ross through the Oval vehicle he launched for his takeover attempt of the business last year, now has to be paid by May 31.

Mr Ross has already provided loans worth £7m in addition to £4.6m of bank guarantees to the Humber business.

He secured 56% of Cosalt shares earlier this year but had his plan to delist the company blocked by other shareholders.

In a statement, Cosalt said: “The company is continuing discussions with David Ross, and the group’s pension trustees and its banks to secure a long term financing solution to ensure it has sufficient working capital to sustain the business.
 
“Any such solution is expected to involve the issue of new equity share capital.”

Debt-laden Cosalt said that because of the uncertainty regarding the discussions, it had not been in a position to publish its accounts for its 2011 financial year by its April 30 deadline.

Consequently its shares have been suspended at its own request pending publication of the accounts.